Suzano Papel e Celulose proposes migration to New Market of B3

Suzano Papel e Celulose, a Brazilian multinational and one of Latin America’s largest integrated pulp and paper producers, has announced the intention to list its shares on the “NOVO MERCADO” of B3, the stock exchange’s highest governance level. The decision was made at a Meeting of the Board of Directors yesterday afternoon and communicated as Material News in the official channels. It requires compliance in advance with the provisions of the shareholders agreement.

“This is a step that reaffirms our commitment to cultivating the highest standards of governance. It is also a demonstration that our company is prepared for new cycles of growth,” said David Feffer, chairman of Suzano Holding and of the Board of Directors of Suzano Papel e Celulose. “Our decision, on which we anticipate the support of all our shareholders, creates the conditions for us to continue growing, doing business and innovating,” he added.

In order to meet the requirements of the “NOVO MERCADO”, all the preferred shares will be converted into common shares. As a result, all shareholders will have voting rights in the decisions of the company, in addition to tag along rights in the event of a transfer of control.

Unlike other listing segment migrations, the controlling group, in a positive gesture, decided to forego the possibility of a conversion premium, proposing a migration without any dilution for preferred shareholders. This is a major development in corporate governance that demonstrates the commitment of Suzano and its controlling shareholders to the country, to the capital market and to all its stakeholders. The unification of the classes of shares will also help position Suzano as a frontrunner in the reshaping of the sector over the long term.

The migration to the “NOVO MERCADO” and the proposed conversion of shares will be submitted for approval to a Shareholders Meeting to be convened in the near future.

Walter Schalka, CEO of Suzano Papel e Celulose, pointed out that “entering the “NOVO MERCADO” is proof of our effort to maintain the alignment of shareholders’ interests and it more explicitly demonstrates the trust we place in the capital market as a source of funding for the sustainable growth of our business.”